(Photo: The Straits Times)
Convenience and consolidation is the name of the game for home-grown electronics giant Gain City.
Its newest megastore in Sungei Kadut, housed in a 500,000 sq ft building, opened in 2015. The store offers more than 100,000 sq ft of retail space, and houses all the store’s offerings under one roof – including its air-conditioning business, consumer electronics arm and its newest foray into home furnishing.
Also situated in the building – which Gain City owns – are the brand’s warehouses, a large event space and even its own petrol pump for its fleet of 180 delivery vehicles.
For Mr Kenny Teo, managing director of Gain City, retail challenges faced by the brand sparked the idea of buying land and building its own megastore and warehousing facilities nearly six years ago .
“Rentals were getting higher and higher, which meant retailers like us had to shrink shop sizes to afford the rents,” the 46-year-old says.
“At the same time, electronics such as televisions and fridges are getting bigger, so we could display less and less in our stores.”
Mr Teo also realised that consumers were getting more discerning – often doing research beforehand and demanding more bang for their buck.
His solution? Build a one-stop shop – making shopping more convenient for the consumer and allowing the company to operate the business more efficiently, given that its displayed merchandise, inventory and after-sales counters were all located in one facility.
“The space in the megastore allows us to showcase entire product ranges so that consumers can compare them on the spot,” he says of the 11-storey complex that cost more than $70 million to build.
“Consolidating our three warehouses into one building also meant we cut down nearly 30 per cent of our overall costs. Savings are passed onto the consumer.”
Though the Sungei Kadut megastore in an industrial estate in north-western Singapore can be considered out of the way, Mr Teo tries to make a customer’s trip there as fuss-free and as pleasant as possible.
The store offers frequent shuttle buses to two MRT stations, a gaming area to keep children occupied, a cafe and foodcourt for a quick snack, and open-plan kitchen concepts, which offer live cooking demonstrations every weekend.
Most of the appliances are also plugged in and functional, which means they can be tested before they are bought. There is also a section offering special discounts on items every weekend.
Gain City also offers a personal shopper service, which can be booked online or over the telephone.
These staff members can help customers select items for their home based on their budget and needs.
Gain City’s investment to improve the efficiency of its business has evidently paid off.
The 36-year-old business has grown 20 per cent year on year since the opening of the megastore and it attracts more than 10,000 customers every weekend.
And though Mr Teo says the company will continue to expand its smaller retail stores – Gain City currently has 10 stores around the island and there are plans to open three more by the end of the year – he says his consolidation strategy serves a unique purpose.
“The smaller stores are important for brand awareness, but the consumer visiting the megastore is obviously already looking to buy a big-ticket item,” he says.
“Being able to offer customers everything they want under one roof is our goal and that efficiency and convenience is what keeps our customers returning again and again.”
Written by Ankita Varma for The Straits Times